filed in Daily Buzz News on Jul.20, 2012
Thing One: Let’s Make A Deal: They did the crime together. They might as well do the time together too.
A bunch of banks under scrutiny in the Libor scandal would like very much to have a ginormous, universal settlement with regulators, so that none of them are embarrassingly singled out the way first-mover Barclays was, according to a new Reuters report. We all saw what happened to Barclays — universal disdain, top executives walking the plank, moronic trader emails forever enshrined in Moronic Trader Email Valhalla. Egads, it’s enough to make one’s monocle pop out of one’s eye!
Reuters also notes, though, that such a mass settlement could be difficult to pull off, however appealing to regulators because of the huge pile of fines it would invariably produce — billions and billions, as Carl Sagan would say. It’s one thing to get banks to work together to routinely steal money. Heck, that’s easy. But, now that the jig is up, they have every motivation to try to cut better deals for themselves and shove other banks under the bus. Meanwhile, Libor, the interest rate affecting trillions in loans and derivatives contracts, is still a complete fabrication, write Peter Eavis and Nathaniel Popper in The New York Times.